Berkshire Hathaway Energy says Oncor merger has support

Berkshire Hathaway Energy, a unit of Warren Buffett’s Berkshire Hathaway, announced the support of new Texas stakeholder groups for its proposed acquisition of Oncor Electric Delivery Co.

The announcement adds to an influential list of Texas business, community and consumer groups that have endorsed Berkshire Hathaway Energy’s bid for Oncor.

TXU Energy, NRG Energy, the Texas Energy Association for Marketers and the Alliance for Retail Markets signed a list of regulatory commitments proposed by Berkshire Hathaway Energy and agreed to support approval of the transaction as proposed.

“Today’s announcement illustrates the growing support for Berkshire Hathaway Energy’s proposed acquisition of Oncor,” said Greg Abel, Berkshire Hathaway Energy chairman, president and CEO. “Ours is a different kind of proposal. It’s one that hasn’t been seen before, and we want Texans to know that we will be a stable, long-term partner.”

In addition to the 44 regulatory commitments previously proposed by Berkshire Hathaway Energy, the company also announced the addition of three more commitments that support the successful competitive energy market in Texas.

TXU Energy and NRG Energy represent two of the largest retail electric providers in Texas, with TEAM and ARM representing dozens of Texas electric market participants. ARM participating members include Champion Energy Services; Direct Energy; NRG Retail Companies; and TXU Energy Retail Co.

The announcement brings the total number of influential Texas stakeholder groups that support Berkshire Hathaway Energy’s proposed acquisition of Oncor to eight, including: Cities Served by Oncor, Texas Industrial Energy Consumers, Office of Public Utility Counsel, and Public Utility Commission Staff.

Last week, according to Reuters, hedge fund Elliott Management Corp., one of Oncor’s creditors, is considering making an offer for the transmission firm.

Elliott’s management reportedly said they can put together a better deal than Warren Buffett’s Berkshire Hathaway.

According to CNBC, Elliott hired investment bankers Moelis to put together a bid of more than $9 billion for Oncor.


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